Interest Rate
Starting from 14% p.a. depending on business vintage, turnover, and CIBIL score. Secured loans with collateral get even lower rates.
Business Loan — Fund Your Business Recovery & Clear App Loan Debt
App loans taken for business emergencies often spiral into high-APR traps. A structured business loan gives you proper working capital, longer tenure, and regulated terms — helping you stabilize operations and clear expensive short-term debts.
- Loan amounts from ₹1 lakh to ₹50 lakhs for genuine business needs
- Interest rates from 14% p.a. — replace 100%+ app-loan APRs
- Flexible collateral and cashflow-based assessment options
Business Loan at a Glance
Quick snapshot of what's available for your business.
Loan Amount
₹1,00,000 to ₹50,00,000 for unsecured options. Secured business loans can go higher based on collateral value and business turnover.
Tenure
12 to 60 months with flexible EMI structures. Some lenders offer step-up EMI plans aligned with seasonal business cashflow patterns.
Business Vintage
Minimum 2 years of business operations required by most lenders. GST registration and ITR filing strengthen your application significantly.
Eligibility Criteria
- Business Type: Proprietorship, Partnership, LLP, or Private Limited
- Business Vintage: Minimum 2 years of operations
- Annual Turnover: ₹10 lakh+ (varies by lender)
- CIBIL Score: 650+ for most NBFCs; 700+ for banks
- ITR Filing: Last 2 years ITR filed with consistent income
- Age: Business owner between 21-65 years
Documents Required
Identity: PAN Card + Aadhaar of proprietor/directors
Business Proof: GST Certificate, Udyam Registration, or Shop Act License
Financial: Last 2 years ITR + 12 months bank statements
Turnover: GST returns (GSTR-1/3B) for last 12 months
Other: Business address proof, partnership deed (if applicable)
Check EligibilityWhy a Business Loan Beats App Loan Borrowing
Structured financing vs. predatory lending — the choice is clear.
Transparent Terms
RBI-regulated lenders provide clear terms, fixed EMI schedules, and no hidden charges — unlike app loans with exploitative processing fees and penalties.
Working Capital Support
Use funds for inventory, equipment, rent, salaries, or clearing expensive short-term debts — improving business cashflow stability.
Build Business Credit
Timely repayment of structured business loans builds your commercial credit profile, enabling larger funding at lower rates in the future.
Cashflow-Based Assessment
Many NBFCs assess eligibility based on bank statement cashflow rather than just ITR — helpful for businesses with informal revenue streams.
Quick Processing
Most unsecured business loans are processed within 3-5 business days with minimal documentation through digital verification channels.
Flexible Structures
Options include term loans, overdraft facilities, invoice financing, and revolving credit lines to match different business needs.
Frequently Asked Questions
I took app loans for my business and now I'm trapped. Can a business loan help?
Yes. A structured business loan at 14-22% p.a. can replace multiple app loans charging 100%+ APR. This consolidation reduces your monthly outflow, stops harassment, and gives you a clear repayment timeline. However, you need a minimum business vintage of 2 years and some financial documentation.
Can I get a business loan with a low CIBIL score?
Some NBFCs consider business loans for CIBIL scores as low as 600 if you have strong cashflow in your bank statements and good business turnover. We also have a dedicated Business Loan for Low CIBIL option with collateral-backed alternatives.
What is the difference between secured and unsecured business loans?
Unsecured loans require no collateral but have higher interest rates (14-26% p.a.) and lower limits (up to ₹50 lakhs). Secured loans backed by property or assets offer lower rates (12-18%) and higher amounts. For debt consolidation, unsecured loans are faster to process.
How is loan amount calculated for businesses?
Lenders typically offer 10-20% of your annual business turnover as loan amount. Bank statement analysis, GST returns, and profitability trends are the primary factors. Having a co-applicant with stable income can also increase eligibility.
Can new businesses (less than 2 years old) apply?
Most traditional business loans require 2+ years vintage. However, Mudra Loans (PMMY scheme) under Shishu (up to ₹50,000), Kishore (₹50K-5L), and Tarun (₹5L-10L) categories support newer businesses with less documentation through select banks.
Do you disburse the loan directly?
No. MudraTrust Finance is a financial advisory and loan facilitation service. We match your business profile with the best-fit lenders, guide you through documentation, and coordinate the entire process. All loans are disbursed by registered banks and NBFCs.